The Zimbabwe Coalition on Debt and Development (ZIMCODD) has urged authorities to adopt a more people-centred monetary policy framework, warning that ordinary citizens continue to struggle despite signs of macroeconomic stabilisation.
Speaking during the Economic Debates Series Breakfast Meeting, ZIMCODD Executive Director John Maketo said current monetary policies must move beyond narrow inflation and exchange-rate targets to address the daily economic realities facing Zimbabweans.
Maketo said high interest rates, exchange-rate instability and persistent structural dollarization continue to weigh heavily on small-scale farmers, informal traders and low-income households, limiting productive economic participation across key sectors of the economy.
“While macroeconomic indicators may point to stabilisation, many ordinary citizens are still struggling to access affordable finance, fair payment systems and basic agricultural inputs,” he said.
Zimbabwe has in recent years battled chronic currency volatility, inflationary pressures and declining confidence in local currency systems, forcing many businesses and consumers to rely heavily on the United States dollar for transactions. According to Reserve Bank of Zimbabwe estimates, the US dollar still accounts for the majority of transactions in the economy despite efforts to strengthen the ZiG currency.
Maketo said small-scale farmers remain among the hardest hit, particularly as seasonal financing costs continue to rise amid tight liquidity conditions and elevated borrowing rates.
He argued that monetary stability should ultimately translate into improved livelihoods, food security and inclusive economic growth rather than simply favourable macroeconomic statistics.
“Monetary stability must go beyond inflation and exchange-rate management. It must support productive borrowing, food sovereignty and inclusive economic participation for all,” Maketo said.
Economists have increasingly warned that Zimbabwe’s highly dollarised environment and elevated lending costs are constraining private sector productivity, particularly among small businesses and rural producers who often struggle to access formal credit markets.
ZIMCODD has consistently advocated for economic policies that prioritize social protection, equitable development and citizen welfare, especially in the face of ongoing economic reforms and fiscal consolidation measures.
